The Life and Health Insurance Company Guaranty Corporation of New York

Rehabilitations

Rehabilitation is a court proceeding authorized under Insurance Law Section 7403 in which the Superintendent takes possession of an insurance company and continues its operations. The goal of a rehabilitation proceeding is to determine whether the factors that gave rise to the court proceeding can be removed so that the Company may return to the market as a financially healthy insurance company. Upon entry of the Rehabilitation Order, the Superintendent will commence a review of the company’s financial condition, and if possible, will develop a plan to return the Company to financial health. It is not possible to give precise timeframes, but review and implementation of a potential rehabilitation plan will be a priority for both the Superintendent and the Court. The New York Guaranty fund is not triggered under a Rehabilitation. Guaranty fund coverage is only provided if a Liquidation order is issued in the future.

Columbian Mutual Life Insurance Company Notice to Policyholders.pdf (nylb.org)